CONTACT:
Ariel Waldman
Senior Counsel to the Attorney General
202-724-6630

LawSuit by DC Attorney general leads to recovery of $300,000 from
Councilmember Thomas plus injunctive relief

District of Columbia Attorney General Irvin Nathan announced today a
settlement with Councilmember Harry L. Thomas, Jr. to recover
substantially all of the funds allegedly diverted by Mr. Thomas from the
District. Mr. Thomas has agreed to repay the city $300,000 over the next
two years and the District has agreed to dismiss its suit, which claims
that Mr. Thomas unlawfully diverted DC Council-earmarked grants and
charitable donations for his personal or political benefit, including the
purchase of a luxury sports utility vehicle, golfing vacations, and the
publication of a brochure extolling his public service.

The written settlement agreement and a Consent Judgment against Mr.
Thomas were filed in D.C. Superior Court today. Under the agreement, Mr.
Thomas will make a total payment to the District of $300,000.00, with an
initial payment of $50,000 today, and five more installment payments of
$50,000 each between now and December, 2013. The agreement also precludes
Mr. Thomas for a period of five years from directing, controlling, or
participating in the solicitation of charitable contributions in the
District, with the exception of his so-called Constituent Fund. Further,
Mr. Thomasí for-profit company HLT Team Thomas / Swingaway, LLC is
required to donate sporting goods and equipment that Mr. Thomas represents
are valued at $50,000 to the Satchel Paige / Senators Little League, a
D.C. affiliate of the congressionally chartered national organization for
Little League Baseball. Mr. Thomas also has agreed to facilitate the
transfer of other sporting goods and equipment to the District. The
agreement will be fully enforceable in court against all of Mr. Thomasís
property should he fail to comply with the terms of the agreement.

The settlement agreement arises out of a civil enforcement action filed
by the District against Councilmember Thomas on June 6, 2011, following an
extensive investigation by the Office of the Attorney General. The
Complaint alleges that, using the resources of his Council office, Mr.
Thomas obtained largely for his personal use funds that had been
ear-marked for "youth baseball programs" and solicited, without
a District charitable solicitation license and without a 501(c)(3)
organization, and raised funds from private donors for alleged charitable
purposes that were never established. The District funds were provided by
Council legislation in 2007 to the D.C. Children & Youth Investment
Trust Corporation, which at Mr. Thomasís direction, passed them to the
Langston 21st Century Foundation, which in turn, at Mr. Thomasís
direction, secretly paid most of the money to Mr. Thomas through his
for-profit and non-profit corporations. Much of the money was then spent
for the personal benefit of Mr. Thomas. The Complaint is understood to be
the first-ever civil enforcement action filed by the Office of the
Attorney General against a sitting member of the City Council. The Office
previously settled with principals of the Langston foundation for $86,000,
bringing the total amount of the cash settlements in this matter to
$386,000.

Attorney General Nathan stated that "We are pleased that
Councilman Thomas has agreed to cooperate with us, repay his debt and
spare the District the burden, expense and distraction of proving its case
in court. At the same time, our unrelenting persistence in bringing and
prosecuting this action demonstrates our commitment to pursue anyone, no
matter his or her station or influence, who would deprive the city of its
precious resources or who would use his or her position of trust and
influence to obtain District of Columbia funds for personal gain."
The Attorney General stated further that his office would be vigilant in
seeking to ensure that there is full compliance with the settlement
agreement.